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CIAC 09-10-14 AGENDA with associated documentsCAPITAL IMPROVEMENTS ADVISORY COMMITTEE MUNICIPAL COMPLEX COUNCIL CHAMBERS 1400 SCHERTZ PARKWAY BUILDING #4 SCHERTZ, TEXAS 78154 of Schertz Core Values Do the right thing Do the best you can Treat others the way you would want to be treated Work together cooperatively as a team 1. Call to order / roll call 2. Hold a public hearing, consider and file three (3) semiannual reports from October 1, 2012 thru March 31, 2014 evaluating the progress of the city on achieving the capital improvements program and identifying any problems in implementing the plans or administering the capital recovery fees. 3. Adjournment CERTIFICATION I, Bryce Cox, Planner, of the City of Schertz, Texas, do hereby certify that the above agenda was posted on the official bulletin boards on this the 5th day of September, 2014 at 5:00 p.m., which is a place readily accessible to the public at all times and that said notice was posted in accordance with chapter 551, Texas Government Code. 13 rycel C O-av Bryce Cox, Planner I certify that the attached notice and agenda of items to be considered by the Schertz Planning & Zoning Commission was removed from the official bulletin board on day of , 2014. title: This facility is accessible in accordance with the Americans with Disabilities Act. Handicapped parking spaces are available. If you require special assistance or have a request for sign interpretative services or other services please call 619 -1030 at least 24 hours in advance of meeting. Capital Improvement Advisory Committee September 10, 2014 Page 1 of I TO: Capital Improvements Advisory Committee THROUGH: Bob Cantu, Chief of Staff PREPARED BY: Robert Galindo, Assistant Finance Director SUBJECT: Hold a public hearing, consider and file three semi - annual reports evaluating the progress of the city on achieving the capital improvements program and identifying any problems in implementing the plans or administering the capital recovery fees. W4k, l4 J_1aIk, I;[i7 7 T, rj imk,p At the June 25, 2014 CIAC meeting the Committee unanimously voted to postpone recommendation so that staff could provide additional information requested. As per the June 11, 2014 CIAC meeting, the notes attached to the corrected Oct 1, 2012 to March 31, 2013 report were updated and now reads $3,336,995.57 on the last paragraph. The formatting correction was done to the footnotes #10 and #11 for the report from April 1, 2013 to September 30, 2013. Section 395.058 (c) (4) of the Texas Local Government Code requires the Capital Improvements Advisory Committee (CIAC) to file semi - annual reports with respect to the progress of the capital improvements plan and report to City Council any perceived inequities in implementing the plan or imposing impact fees. Section 90 -158 of the City's Code of Ordinance includes this same requirement. The first report, is the corrected semi - annual report from October 1, 2012 through March 31, 2013, In order to finalize this report, staff had to do several years of research on the history of the Capital Recovery Fund. During this review, staff found an error when the loan was made to the Water Fund for water meters. This was corrected and coordinated with the independent auditor. The correction resulted in a higher ending fund balance. In addition, the reporting format was reviewed for consistency. Based on input from staff, footnotes are being included to provide a better understanding of the financial information in the semi - annual report. The standardized formatting will be utilized in future reports. The second semi - annual report is from April 1, 2013 through September 30, 2013. The third semi - annual report is for the first six months of this fiscal year from October 1, 2013 through March 2014. This third report will bring the reporting up to date. STAFF ANALYSIS AND RECOMMENDATION: Staff recommends the CIAC accept these reports and file the three semi - annual reports with City Council. The semi - annual reports will consist of the items presented to the CIAC and the draft minutes from this meeting. Attachments: Original Impact Fee Report October 1, 2012 to March 31, 2013 Corrected Impact Fee Report October 1, 2012 to March 31, 2013 Impact Fee Report April 1, 2013 through September 30, 2013 Impact Fee Report October 1, 2013 through March 31, 2014 2 * Beginning Water Impact fee includes loan for water meters of $465,714.79 IMPACTS FEES Water Sewer Total Beginning Impact Fee Balance 2,953,706.10 21850,443.72 578041149.82 Revenues: Impact Fees 3857821.00 2197586.68 6057407.68 Fund Transfers 0.00 0.00 0.00 Investments Gain/Loss 21275.61 47496.65 61772.26 Reimbursements 0.00 0.00 0.00 Expenses: Capital Recovery Study Rate (2,047.50) (2,047.50) (4,095.00) CCMA-NorthCliffe Impact Fees 0.00 0.00 0.00 Auditor/Accounting Service 0.00 0.00 0.00 Investment Management Fee 0.00 (2,133.49) (2,133.49) East Oak Water Pump - Advertising (264.64) 0.00 (264.64) East Oak Water Pump - Engineering (27495.00) 0.00 (2,495.00) S. WW Treatment Plant - Pre-Design 0.00 (82,262.17) (82,262.17) Woman Hollering Creek Treatment Plant 0.00 0.00 0.00 Schaffer Road Water Line 0.00 0.00 0.00 Total Revenue Over /(Under) Expense 3837289.47 1377640.17 5207929.64 Ending Impact Fee Balance �86` §1 1 95'' 57 '9`988b8 189 25:1017 6 * Beginning Water Impact fee includes loan for water meters of $465,714.79 �1 11111 IMPACTS FEES Water Sewer Total Beginning Impact Fee Balance* 312757410.20 21839,542.58 61114,952.78 Revenues: Impact Fees 1 385,821.00 2191586.68 6057407.68 Interest Earned 2 132.26 45.99 178.25 Water Loan - Interest 3 141439.01 0.00 14,439.01 Investments Income 4 27144.62 910.89 3)055.51 Capital One - Investment Income 0.00 31538.50 37538.50 Expenses: Capital Recovery Study Review 6 (2,047.50) (2,047.50) (4,095.00) Investment Management Fee 7 0.00 (2,133.49) (2,133.49) East Oak Water Pump - Advertising 8 (264.64) 0.00 (264.64) East Oak Water Pump - Engineering 9 (2,495.00) 0.00 (21495.00) S. Reg. Reclamation Plant - Pre-Design 10 0.00 (82,262.17) (82,262.17) Total Revenue Over/( Under) Expense 3971729.75 1371638.90 5357368.65 Ending Impact Fee Balance 316731139.95 279771181.48 61650,321.43 Beginning Water Impact fee includes loan for water meters of $450,506.76 1 Impact Fees collected between Oct 1, 2012 through Mar 31, 2013 2 Bank interest collected between Oct 1, 2012 through Mar 31, 2013. Based on ending bank cash balance. Water ending cash balance of $838,933.10 Sewer ending cash balance of $159,736.44 3 Interest from loan to Water department for purchase of water meters 4 Investment Income collected between Oct 1, 2012 through Mar 31, 2013 Water and Sewer have separate investment accounts. Investment Income from the Capital One investment for Sewer recorded between Oct, 12012 through Mar 31, 2013. 6 Capital Recovery Study Review expenses 50% to Water and % to Sewer. Conducted by Economist.com 7 Investment Management Fee charged on the Capital One Investment for Capital Recovery SewerFund. Advertising for engineering bids on the East Live Oak PlantIPump upgrades. 9 Engineering costs from Ford Engineering for the East Live Oak Plant[Pump upgrades 10 Design costs from Clbolo Creek Municipal Authority for the South Regional Water Reclamation Plant. The beginning balances in the previous report were Water $2,,953,706.10 and Sewer 443.72. 'The corrected beginning balances are Water $3,275,410.20 and Sewer $2,.839,542.58. The difference in th Water balance was a correction to the water meter loan of $310,802.96. There was also an adjustment of $10,901.14 for the reassignment of the cost of an asset to Sewer. Total revenues in the previous report were Water $383.,289.47 and Sewer $137.,640.17. The corrected total revenues are Water $397,,729.75 and Sewer $137,.638.90. The difference in the Water revenues were the Water Loan Interest of $14.,439.01 and an adjustment to interest of $1.27. For Sewer total revenues, the difference was interest adjustment of of -$1.27. In the previous report, ending balances for Water were $3,336,.995.57 and Sewer $2,988,083.89 for a total of $6.,325.,079.46. The corrected ending balances are Water $3,673,139.95 and $2,977,181.48 for a total of $6,.650,321.43. A difference of $325,241.97. Expenses: Impact Fees 2 Interest Earned 3 Water Loan - Interest 4 Investment Income 5 Capital One - Investment Income 6 CC MA 7 Auditor /Accounting Service 8 Investment Management Fee 9 East Oak Water Pump - Engineering 10 S. Reg. Reclamation Plant - Pre - Design 11 Total Revenue Over /(Under) Expense Total Impact Fee Balance Beginning Impact Fee balance as of • 1 Total IMPACTS FEES Water Sewer 37673Y139.95 279773181.48 67650)321.43 441, 567.00 388, 865.16 8301432.16 148.04 22.87 170.91 12, 362.65 0.00 12, 362.65 2,525.11 17115.77 33640.88 0.00 21270.48 21270.48 0.00 (11800.00) (17800.00) (11145.03) (854.97) (21000.00) 0.00 (21134.34) (27134.34) (12, 378.64) 0.00 (12, 378.64) 0.00 (49, 861.30) (49, 861.30) 443, 079.13 337, 623.67 780, 702.80 Impact .• between Apr 1, 2013 • • -• 1 2011 4,116, 219.08 373141805.15* 7,431, 024.23 3 Bank interest collected between Apr 1, 2013 through Sept 30, 2013. Based on ending an cash balance. Water cash balance of $434,858. 54 Sa er cash balance of $67,169.28 4 Interest from loan to Water department for purchase of water meters. Loan paid off in Sept 2013. 5 Investment Income collected between Apr 1, 2013 through Sept 30, 2013 Water and Sewer have separate investment accounts. 6 Investment Income from Capital One Investment for Sewer fund collected between Apr 1, 2013 thru Sept 30, 2011�2 7 Payment to CC MA - Correction 8 Auditor /Accounting Service expenses allocated by percentage of Water fund balance and Sewer fund balance. 9 Investment Management Fee charged on the Capital One Investment for Sewer Fund. 10 Engineering costs from Ford Engineering for the East Oak Plant/Pump upgrades Design costs from Cibolo Creek Municipal Authority for the South Regionz, Water Reclamation Plant. Revenues: Impact Fees 7 1 nterest Earned 2 Investments Income 3 Capital One - Investment Income 4 Expenses: Investment Management Fee 5 South East Quad Elevated Tank 6 S. Reg. Reclamation Plant - Pre - Design 7 Total Revenue Over /(Under) Expense Ending Impact Fee Balance 1 Impact Fees collected between Oct 1, 2013 through Mar 31, 2014 2 Bank interest collected between Oct 1, 2013 through Mar 31, 2014. IMPACTS FEES Water Sewer Total 411161219.08 313141805.15 714311024.23 4001491.00 3867104.22 786,595.22 152.04 77.03 229.07 21647.64 11040.74 3,688.38 0.00 41438.63 41438.63 0.00 (2,142.65) (27142.65) (6.77) 0.00 (6.77) 0.00 (61042.30) (61042.30) 403,283.91 3837475.67 7861759.58 415191502.99 376981280.82 812177783.81 3 Investment Income collected between Oct 1, 2013 through Mar 31, 2014 Water and Sewer have separate investment accounts. 4 Investment Income from the Capital One investment for Sewer recorded between Oct, 1 2013 through Mar 31, 2014. 5 Investment Management Fee charged on the Capital One Investment for Capital Recovery Sewer Fund. 6 Engineering costs on the South East Quad Elevated Tank. (Postage- certifed mail to TCEQ) 7 Design costs from Cibolo Creek Municipal Authority for the South Regional Water Reclamation Plant.